《Enterprising China》

1.Introduction1

1.1 Structure of the book3

1.2 Case studies4

1.3 Business in China7

2.Legal and Economic Reforms and the Development of a Corporate Sector9

2.1 Introduction9

2.2 Overview of corporate sector development14

2.2.1 State-owned and collectively-owned enterprises14

2.2.2 Private firms16

2.2.3 Foreign firms18

2.2.4 The court system21

2.3 Rural and urban reforms in the 1980s22

2.4 'Open door' policy (1978/1992-)26

2.5 Early 1990s' liberalization policies32

2.6 Mid to late 1990s' focused marketization36

2.6.1 Innovative capacity37

2.6.2 Privatizing state-owned enterprises and improving the corporate legal foundation39

2.7 Rapid market development in the 2000s45

2.7.1 The banking system47

2.7.2 Capital markets51

2.8 Conclusion55

Appendix 2.1 Key Chinese commercial and civil laws56

Appendix 2.2 Securities and banking regulations in China57

3. Law and Markets59

3.1 Introduction59

3.2 Law and markets61

3.2.1 Theoretical and empirical relationships between laws and markets61

3.2.2 The China paradox63

3.2.3 A complementary view of legal and economic development68

3.2.4 Structure of the chapter68

3.3 A comparative perspective of legal development and markets69

3.3.1 Chinese law69

3.3.2 Laws and markets in China and the USA71

3.3.2.1 Patent laws and economic growth74

3.3.2.2 Corporate law and economic necessity76

3.3.2.3 Regulatory reform supporting markets: China's CSRC(China Securities Regulatory Commision) and the US SEC78

3.4 Complementarities between law and markets81

3.4.1 A test of Granger non-causality82

3.4.2 The empirical results84

3.5 Institutions and transition in China87

3.6 Enforcement of laws90

3.6.1 Foreign firms90

3.6.2 Informal institutions91

3.7 Conclusion: China's legal and economic reforms in an era of global integration93

4. State-Owned Enterprises: Law as Instrument of Economic Policy97

4.1 Introduction97

4.2 Early reforms: Incentivizing state-owned enterprises in the 1980s101

4.2.1 SOELaw101

4.2.2 Bankruptcy Law103

4.2.3 Contract Responsibility System (CRS)104

4.2.4 Problems with the CRS106

4.3 Gongsihua and ownership reform in the 1990s109

4.3.1 Corporatization109

4.3.2 'Grasping the large, releasing the small'111

4.4 Dispersed ownership and the enactment of securities laws114

4.5 Governance by corporate laws in the 2000s118

4.6 Conclusion120

Case study 1: Three decades of state-owned enterprise reform—Haier121

Case study 2: State ownership and consolidation—national oil companies (by Kun-Chin Lin, King's College, London)130

Case study 3: High-tech goods/RD sector—the aviation industry136

Case study 4: Corporatization of state-owned banks: ICBC144

5. Collectively-Owned Enterprises: Hybrid Ownership Form and the Partial Reform Strategy158

5.1 Introduction158

5.2 Origins of township and village enterprises (TVEs)161

5.3 The rise and fall of TVEs165

5.4 The multi-tasking role of TVEs168

5.4.1 Why publicly-owned enterprises multi-task169

5.4.2 Theoretical basis of TVEs171

5.4.3 Shifting policy base173

5.4.4 TVEs in transition175

5.5 Urban collectives and the performance of the collective sector177

5.6 Conclusion182

Case study 5: Evolution of TVEs—the toy industry184

6. Private Firms: Law Ex Post and as Obstacle187

6.1 Introduction187

6.2 The laws and policies governing an evolving private sector189

6.3 Constrained entrepreneurship191

6.3.1 Social networks191

6.3.2 Institutional impediments193

6.4 Entrepreneurial determinants194

6.5 The traits of entrepreneurs195

6.5.1 Socio-economic factors influencing urban residents203

6.5.2 Socio-economic factors influencing migrant entrepreneurs207

6.5.3 Legal development influencing both sets of entrepreneurs210

6.5.4 Robustness of legal development and the entrepreneurship decision212

6.5.5 Provincial rates of self-employment215

6.6 Conclusion218

Case study 6: Going global—Lenovo and the PC industry219

7. Foreign Firms: Law Leading the Market225

7.1 Introduction225

7.1.1 Law leading the market227

7.1.2 Structure of the chapter228

7.2 Foreign direct investment and Special Economic Zones229

7.2.1 FDlinChina229

7.2.2 Special Economic Zones232

7.3 FDI policies and laws235

7.4 Laws leading market development238

7.5 Post-WTO accession and international economic laws243

7.5.1 FDI laws and policies continuing to circumscribe the market243

7.5.2 The influence of international economic law245

7.6 Conclusion248

Case study 7: Specializing in low-tech exports: textiles and clothing249

Case study 8: Developing a medium-tech sector: automobile industry259

Case study 9: Early FDI policy—joint ventures and the mobile phone industry270

Case study 10: Wholly foreign-owned enterprises—Carrefour and the retail sector (by Jonathan Story, INSEAD)279

Appendix 7.1 Special Economic Zones (SEZs)283

8.Conclusions: Business in China—The Evolution of Laws and the Market285

8.1 Introduction285

8.2 Do corporate laws matter in China?288

8.3 Ongoing corporate sector reforms297

8.3.1 Transformation of state-owned enterprises297

8.3.2 'Going out' policy300

8.3.3 Private firms301

8.4 The Chinese business environment in the twenty-first century303

8.4.1 The second thirty years of reform303

8.4.2 The evolving market306

8.5 Assessing the future contour of China's market309

Case study 11 : Post-WTO financial market development(by Sanzhu Zhu, SOAS, University of London)311

Case study 12: Effectiveness of laws—evaluating the patent laws322

Appendix 8.1 Company registration in China328

Bibliography335

Index353